In just over half a month, Chinese assets experienced a sudden surge followed by a period of adjustment. Since September 24, A-shares, Hong Kong stocks and US-listed Chinese stocks have seen rare and significant gains. A-shares witnessed a remarkable event where the stock index surged by more than 10% at market open, with single-day trading volume reaching 3.45 trillion yuan. Hong Kong stocks also saw sharp gains during the National Day holiday, attracting global attention. However, after the holiday, Chinese assets went through significant fluctuations. Despite these sharp rises and falls, major stock indices are still significantly higher than before this round of market activity began.
The market rebound can be traced back to a press conference held earlier. On the morning of September 24, the People’s Bank of China and two other ministries announced a series of unexpected financial policies, including a reserve requirement ratio cut, interest rate cuts and the creation of new monetary policy tools to support the stock market. The market responded with a sharp rise.
“The policy package introduced this time aims to stabilise market expectations, enhance economic vitality and promote stable economic growth, reflecting the leadership’s accurate assessment and proactive response to the Chinese economic situation,” said Tian Xuan, Dean of the Tsinghua University’s National Institute of Financial Research, in an interview with Caijing.
